Two commercial abalone hatcheries were established in 1986 and advances in hatchery technology, genetics and artificial feeding have led to the commercial production of significant numbers of abalone seed on a regular basis. There are three types of hatchery seed available for on-growing, greenlip abalone (Haliotis laevigata), blacklip abalone (Haliotis rubra), and the hybrid 'tiger' species.

Development of the industry has been constrained by the costs of growing abalone: animals fed on their natural diet of seaweed are expensive to produce, and artificial feeds have been (until recently) unsuccessful.